LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
81ST LEGISLATIVE REGULAR SESSION
 
April 26, 2009

TO:
Honorable Allan Ritter, Chair, House Committee on Natural Resources
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB4763 by Crownover (Relating to the creation of the Denton County Municipal Utility District No. 8; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain.), As Introduced

The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that:

The bill amends Subtitle F, Title 6, Special District Local Laws Code by adding Chapter 8343 to create Denton County Municipal Utility District No. 8 (District) with the powers and duties of a municipal utility district under Water Code Chapters 49 and 54. The purpose of the District includes providing works and projects under powers conferred by Article XVI, Section 59 and Article III, Section 52, Texas Constitution to benefit the property within the District.
 
The District is subject to confirmation election by the voters. The District is subject to consent of all municipalities in whose corporate limits or extraterritorial jurisdiction the district is located.  The bill does not name five temporary directors. The majority owners of the assessed land value inside the District may submit a petition requesting the TCEQ appoint the five temporary directors listed in the petition.
 
The bill becomes effective immediately with two-thirds vote of the members or on September 1, 2009.

1)  Population – The proposed district is located in rural Denton County. The 2007 State Water Plan projects Denton County to grow from its 2000 population of 432,976 people to 720,064 in 2010 and to 953,668 in 2020. The county other population of Denton County was 21,332 in 2000 and is expected to grow to 34,643 in 2010 and to 43,946 in 2020. 
 
2)     Location – The proposed district is located in east-central Denton County, east of the City of Denton and south of Cross Roads. The proposed district does not appear overlap any known CCN boundaries.
 
3)  Comments on Powers/Duties Different from Similar Types of Districts - The District has the power of eminent domain limited to inside the District's boundaries for road projects and recreational facilities.  The District has the authority to impose a contract tax and for road projects. 
 
4)  Overlapping Services - The stated boundaries form an acceptable closure. An area map containing at least two reference points (major road names, road intersections) and the proposed district's  geographic location mapped within Denton County is needed to complete overlapping services check. The District may overlap Certificate of Convenience and Necessity (CCN) Nos. 13018 & 20920 for Denton County Fresh Water Supply District (FWSD) No. 8A, CCN Nos. 13019 & 20921 for Denton County FWSD No. 9, CCN Nos. 13020 & 20922 for Denton County FWSD No. 11, CCN No. 20908 for City of Oak Point, CCN Nos. 11856 & 20930 for Mustang Special Utility District, Denton County Municipal Utility District (MUD) Nos. 4 & 5, Denton County FWSD Nos. 11A & 11B.
 
5)  TCEQ's Supervision - As with general law districts, the TCEQ will have general supervisory authority, including bond review authority and review of financial reports.

6)  Water Use – Within Denton County, about 17 percent of the total water used in 2004 was groundwater. Of this, 90 percent was for municipal purposes. Groundwater within Denton County is primarily pumped from the Trinity Aquifer with 83 percent of the groundwater pumped coming from the Trinity Aquifer and 17 percent pumped from the Woodbine Aquifer.



Source Agencies:
580 Water Development Board, 582 Commission on Environmental Quality
LBB Staff:
JOB, CL